China’s coronavirus could be positive for US jobs
The fast-spreading, highly contagious virus has infected thousands of people in China and has led to raised fears about a global pandemic. The virus has had economic impact in china as the Chinese stock market declined rapidly upon open.
However, it could have a positive impact on the U.S. economy, according to the Secretary of Commerce, Wilbur Ross.
Wilbur Ross said on Thursday last week “The fact is, it does give businesses another thing to consider when they go through their review of their supply chain”.
The fast-spreading coronavirus has claimed more than 165 lives and has more than 7,700 confirmed cases. This will lead businesses to reconsider their supply chains.
Businesses that reconsider supply chains could help quicken the pace at which jobs and manufacturing are returning to the U.S from overseas.
Gold slides 1% as risk sentiment improves
Gold dropped a severe 1% as the Asian market opened and investors opted for riskier assets as China took preventative measure and stops to relieve pressure in its economy from the impact of the Coronavirus epidemic.
Spot Gold traded at $1,573/oz after testing highs of $1,592/oz, the highest since January 8th. U.S gold futures also traded at $1,578/oz, down 0.6%.
The dollar gained 0.4% against its rivals, thus making it expensive for investors holding gold.
WHO warns that our world is dangerously unprepared for pandemic. Oil falls to more than 1-year low.
Oil fell to its yearly low as fears of slowing demand hammered crude prices. “The oil market has been subject to many supply shocks over recent years, but an acute demand shock has not been felt since the 2008 financial crisis” said RBC’s Michael Tran. This is due to the fact that China is the world’s largest oil importer and the second-largest oil consumer, therefore a demand slowdown may have a huge impact on oil prices.